Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 9 years ago on . Most recent reply

User Stats

22
Posts
34
Votes
Keith N.
  • Investor
  • Ottawa, IL
34
Votes |
22
Posts

For a Solo(k), is rental income equal to self-employment Income?

Keith N.
  • Investor
  • Ottawa, IL
Posted

I apologize if this has already been answered.  I tried searching for the answer to my question, but was unable to find it.

I just finished reading the BP book on tax strategies and am interested in setting up a solo 401(k).  One of the requirements is that there must be self-employment income.  I don't sell, flip, wholesale, or have any other income that would be schedule C.  I have 17 units that generate rental income.  I know that rental income isn't subject to self-employment taxes, but is it considered self-employment income for purposes of funding a solo(k)?  I appreciate your help.

  • Keith N.
  • Most Popular Reply

    User Stats

    17,845
    Posts
    6,235
    Votes
    Dmitriy Fomichenko
    #1 New Member Introductions Contributor
    • Solo 401k Expert
    • Anaheim Hills, CA
    6,235
    Votes |
    17,845
    Posts
    Dmitriy Fomichenko
    #1 New Member Introductions Contributor
    • Solo 401k Expert
    • Anaheim Hills, CA
    Replied

    No, rental income is considered to be passive income. You need active (earned) income.

    • Dmitriy Fomichenko
    • (949) 228-9393
    business profile image
    Sense Financial Services LLC
    4.9 stars
    166 Reviews

    Loading replies...